Conagra Brands to Acquire Pinnacle Foods for Approximately $ 8.1 Billion

Since being named CEO of Conagra in 2015, Connolly has radically transformed the company to focus on modernizing a branded food portfolio that includes Orville Redenbacher popcorn and hot drinks. Hebrew National dogs. He has invested money in his frozen food business because Generation Y members have rediscovered the cost and health benefits of frozen eating.

In the process, he has both paid and added to his wallet. She sold her private label unit for $ 2.7 billion in 2016 and, later that year, she started her potato business, Lamb Weston Holdings, whose business turnover was 39, raises to $ 6.9 billion. He bought a number of small brands of snacks, including Angie's Artisan Treats, the parent of Boomchickapop, and Thanasi Foods, the parent of Duke's meat snacks.

For the fourth quarter of the company, Conagra announced organic sales growth of 2%, a measure that eliminates the impact of acquisitions and currencies. In its chilled and frozen business, it recorded organic sales growth of 5.2%.

"After three years of transformation work to create a pure brand food company, we are well positioned to accelerate the next wave of change," Connolly said in a statement on Wednesday.

Pinnacle, meanwhile, has undergone its own changes. She acquired Boulder Brands, owner of gluten-free foods and snacks like Udi's and Glutino, for around $ 975 million in 2016.

Nevertheless, Pinnacle is experiencing its strongest growth in its frozen products sector, the largest in the company. In the last quarter, it increased by 7.5%. Its Boulder business grew 0.5% and its grocery business, which includes brands such as Vlasic pickles, Duncan Hines cake mix and Wish-Bone vinaigrette, increased 0.6%. The latter was pressed because consumers look healthier, cheaper or newer.

While large food companies have seen their sales stagnate while they face the burden of having big brands without contact with today 's consumers, frozen products have been one of the few categories that they were able to revive thanks to the investment. This is a category that particularly benefits from the scale.

It has also been an activity center M & A. Schwan's Co., manufacturer of frozen foods like Tony's pizza, hired a bank last year to weigh a sale CNBC reported. Nomad Foods announced earlier this month its intention to acquire the British Aunt Bessie & # 39; s frozen potato and pudding company. In recent years, the company has introduced several brands of frozen products, including Findus and Iglo.

Goldman Sachs and Centerview Partners served as financial advisors to Conagra Brands, and Jones Day acted as legal counsel.

Evercore and Credit Suisse were financial advisors to Pinnacle Foods and Cravath Swaine & Moore provided legal advice. Morgan Stanley and Rothschild & Co. provided strategic advice to Pinnacle Foods.